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On September 22, 2020, the New Development Bank (NDB) priced its USD 2 billion, 5-year COVID Response Bond in the international capital markets, following its inaugural issuance on June 16, 2020. This is the NDB’s largest-ever USD benchmark bond to date.

The net proceeds of the bond issuance will be used to finance sustainable development activities in the Bank’s member countries, including COVID-related emergency assistance programs. NDB is targeting to provide up to USD 10 billion in crisis-related assistance, including financing healthcare and social safety-related expenditures as well as supporting economic recovery efforts.

The transaction marks NDB’s second foray into the international capital markets following a highly successful inaugural benchmark issuance. The transaction garnered notable demand from a geographically diverse investor base, and substantial participation from central banks and official institutions, which accounted for 66% of final allocations. The geographic distribution of investors of the final bond book was: Asia – 57%, EMEA – 34%, Americas – 9%.

The 5-year benchmark bond was issued at a spread of 37 bps over mid-swaps and pays a fixed annual coupon of 0.625%. Bank of China, Barclays, Citi, Goldman Sachs International and Standard Chartered Bank are acting as lead managers of the bond issuance.

29 September 2025
USD 2bn
0.625%, Fixed, Annual 30/360
Settlement Date
29 September 2020
New Development Bank (NDB)
Issuer rating
AA+ (S&P) / AA+ (Fitch) / AAA (JCR) / AAA (ACRA)
Reg S, Registered form
Issue price
Issue yield
USD 200k+1k
Euronext Dublin Regulated Market – Irish Stock Exchange
Lead managers
Bank of China, Barclays, Citi, Goldman Sachs International, Standard Chartered Bank
China Construction Bank, Industrial and Commercial Bank of China Limited, HSBC, Nomura, TD Securities, Royal Bank of Canada